Nigeria's construction industry faces widespread business failures unless the federal government settles unpaid bills for certified projects, the Nigerian Institute of Quantity Surveyors (NIQS, the professional body for construction cost managers) warned on Wednesday in Abuja.

Dr Aminu Muhammad Bashir, President of the NIQS, raised the alarm at a press conference ahead of the Institute's 2026 National Conference and Annual General Meeting. He urged President Bola Tinubu to personally examine the plight of contractors before the situation deteriorates further.

"The inability of government agencies to settle outstanding payments for completed and certified projects had left contractors struggling to pay suppliers, subcontractors and workers," the Institute said, threatening the survival of businesses that have operated in the industry for decades.

Why is the NIQS appealing directly to Tinubu?

Bashir appealed to Tinubu to intervene directly, warning that prolonged delays in settling payment certificates (formal documents certifying completed work for payment) are undermining contractors' capacity to remain in business. Building collapses attract public concern, he observed, yet the gradual collapse of construction businesses arising from unpaid government obligations receives insufficient attention despite its implications for employment, investment and infrastructure delivery.

The crisis has become so severe that contractors executing federal projects are being encouraged to take their complaints to the Office of the Accountant-General of the Federation. Bashir disclosed that one federal agency had recently asked contractors handling its projects to establish a committee to present grievances over unpaid certificates and inadequate project funding to the Accountant-General's office.

What is worsening the payment crisis?

The NIQS president identified the continued reliance on previous budget cycles as a key factor. The government was still operating the 2025 budget in November 2026, he noted, compounding contractors' financial difficulties.

Some contractors have reached a point where accumulated interest on outstanding certificates has substantially eroded their value, making further pursuit of the payments economically unattractive.

Bashir acknowledged the financial challenges confronting the government but insisted that capital expenditure must be tied to available resources. This, he argued, would avoid creating contractual obligations that public authorities cannot meet. He called for:

• timely release of approved capital funds;
• prompt settlement of certified payments;
• prioritisation of ongoing projects before the commencement of new ones.

The Institute maintained that appropriating funds without ensuring their actual release does little to advance infrastructure development. Budgetary allocations, it stressed, must translate into funded projects and completed infrastructure.

How large is Nigeria's housing problem?

Citing figures from the National Housing Data Technical Committee, Bashir put Nigeria's housing deficit at nearly 15 million units. He identified four major obstacles to closing the shortfall:

• expensive building materials;
• high land costs;
• inadequate infrastructure;
• limited access to long-term financing.

Bashir argued that the rising cost of construction is making decent accommodation increasingly inaccessible to ordinary Nigerians. Even federal government employees and other working-class Nigerians struggle to afford housing amid rising costs.

He urged the Federal Government to consider removing taxes on locally manufactured building materials, particularly cement, to lower construction costs and improve housing affordability. The affordability of housing, he said, should be measured by the ability of intended occupants to purchase or rent completed properties, not simply by the cost of putting up the buildings.

The relative stability of the naira against the dollar was encouraging, Bashir said, but additional policy measures are necessary to reduce the cost of building materials.

What happens at the Ilorin conference?

The Institute's 2026 National Conference and Annual General Meeting runs from November 16 to 20 in Ilorin, Kwara State. Its theme is "Financing Sustainable Mass Housing: Synergising Cost Management and Capital Markets for Affordable Shelter in Nigeria." The event will bring together policymakers, financial institutions, property developers and construction professionals to explore alternative funding mechanisms for affordable housing delivery.

Bashir disclosed two further initiatives. The NIQS plans to engage the Securities and Exchange Commission (SEC, the regulator of Nigeria's capital market) on proposals to make independent cost certification and verification of project progress by registered quantity surveyors a requirement for housing developments financed through capital-market instruments.

The Institute will also launch its Cost Data Bank at the conference, providing dependable construction cost information for professionals, investors, developers and government institutions.